In 2018, we set out to help Canadianssee the beautiful possibilities at home
and in the world around them.

It was a year of beautiful possibilities for

IKEA in Canada,

the planet,

Life at Home,

IKEA co-workers,

and the many people.

“We’ve accomplished a lot in one year at IKEA in Canada. We opened two, new stores in Halifax and Quebec City, grew our team to 6,500 co-workers, introduced many new ways to shop, and saw positive sales growth across all channels. We also lead by example on issues that matter to us – from our announcement to phase out single-use plastics, the launch of our refugee employment program and commitment to causes that promote gender equality.

2018 is also the year we lost our dear founder Ingvar Kamprad at the age of 91. His driving vision – to create a better everyday life for the many people – will continue to live on in everything we do.

We are proud of our growth this year, but we know the retail landscape is changing faster than ever. As we look toward the future, we’ll transform our business with the ambition to become even more convenient and accessible to our customers. To the beautiful possibilities ahead!”

Marsha Smith, President, IKEA Canada

1

Beautiful Possibilities

for IKEA in Canada.

We’re on a mission to make the shopping experience easier and more convenient for Canadians.

It’s thanks to the many Canadians that we experienced another successful year.

We had $2.39 billion in sales.

+8% from last year.

And $241.57 million

in online sales.

+18.8%
from last year.

We had

30 millionvisitors to our stores.+6.9% from last year.

104 millionvisits to IKEA.caand our mobile app.+10.1% from last year.

We contributed to Canadian households, businesses and governments through our operations.

$2.2 billionin economicoutput.

$605 millionin labourincome.

Over 13,400direct, indirectand induced jobssupported in Canada.

Canadians came togetherand dined with us.

We saw$102 millionin food sales,13% morethan last year.

In fact, they ate …

3.6 millionhot dogs.

2.2 millionmeatball plates.

500 thousand(sustainably sourced) salmon fillets.

Now there are347,485more BILLY bookcasesin homes across Canada.(And that makes us happy)

We now have IKEAcoast-to-coast….

Thousands showed upfor opening day at IKEA Halifax……

and showed us how to really throw a kitchen party.

The rain didn’t hold back more than 4,000 Quebec Cityresidents from saying“Bonjour!”

Through it all, our customers continueto be at the heart of everything we do.

And as their lives change and evolve,so have the many ways they can shopwith IKEA in Canada.

This year, we installed solar panels on therooftops of our two Alberta stores that willtogether offset 1,600 tonnes of CO2 each year.We now have rooftop solar installations on morethan half of our stores nationwide.

Did you know?

The IKEA Edmonton system is one of the largest commercial rooftop solar systems in the city, with 2,905 panels.

We are powering Canadawith Renewable Energy.

We are proud to own two wind farmsin southern Alberta. Together theygenerate enough electricity to powerabout 40,000 homes.

That’s about 4x as much power aswe consume across the country!

But in a world where resourcesare scarce, we know there’sso much more to be done.

Looking forward, we’re committed to being a fully circular business by 2030.

Circularity… what is that?

It means designing our products with re-use, repair, repurposing, and recycling in mind from the beginning, using only renewable, recycled, and recyclable materials, eliminating waste, and connecting with our customers in new ways to give products a longer life.

As Jonas says,“reusing things is much better.”

We’re introducing new programs to help our customers extend the life of the IKEA products they love, and to create a second life (or third or fourth!) for products they no longer need.

All cotton in IKEA products comes from more sustainable sources (through the Better Cotton Initiative or equivalent standard) that significantly reduces the environmental impact of cotton production.

We are proud to be one of Canada’s Greenest Employers - every year for the past decade.

Did you know?

In stores, waste reduction and recycling programs at each location divert approximately 85% of waste materials away from landfill.

Through ourSustainable LivingChallenges with co-workers and customers,

Did you know?

The IKEA veggieball has a carbon footprint that is 1/30th of the traditional beef & pork meatball.

We saved 6.6 million litres of water

avoided 1.4 million kg of CO2 emissions

and diverted 55,700 kg of waste

“We embrace the responsibility, challenge, and opportunity to make IKEA Canada a positive force for the natural environment and communities that we depend on for our success.

We will work to enable a better life at home within the limits of the planet, to become fully circular and climate positive in our operations, and to take a stand for a fair and inclusive Canadian society.

We also know that we can’t do it alone,
so we look forward to being a partner to many others who share these goals.”

Brendan Seale, Sustainability Manager

3

Beautiful Possibilities

for Life at Home.

At IKEA in Canada we want to be leaders in life at home.

This year, we visited 300 Canadian homes to find out people's needs, dreams and frustrations with their homes from coast-to-coast.

And we also conducted one of our largest studies ever on how Canadians live at home.

Here’s a few things we learned from the Life at Home report.

Canadian homes are getting smarter.

60% of Canadians have some sort of smart technology in their homes.

Whether we live big or small, we all have our struggles with storage.

The hardest to store being:

Toys

Seasonal Decor

Patio Furniture

Tools

Life at home means life with pets.

53% of Canadianssurveyed have pets at home!

So we introduced LURVIG.(It means ‘SHAGGY’ in Swedish.)

Did you know?

Whether it’s condo-living at IKEA North York or East Coast architecture at IKEA Halifax, each of our stores show inspiring, relevant, and affordable home furnishing solutions that reflect life at home in the local community!

At IKEA, we believe in “democratic design” which means making products and solutions for a better everyday life at home:

Form making every product beautiful.

Function are innovative and work the way they are intended.

Quality are able to withstand daily use and last for a long time.

Sustainability are sustainably made.

Low Priceare affordable for everyone.

For example: SINNERLIG Pendant Lamp

FormBeautiful pendant lamp made of woven material.

FunctionGives a soft glowing light, that gives home a warm and welcoming atmosphere.

QualityEach lamp is handmade and unique.

SustainabilityBamboo is a renewable material.

All at a low price: $99

In 2018, we celebrated NEW products, well-loved classics AND our 75th anniversary!

That’s why we brought back iconic pieces from the past 75 years for our limited edition GRATULERA collection.

Did you know?

IKEA has been in Canada for over 40 years.

4

Beautiful Possibilities

for our co-workers.

At IKEA, our workplace is based on our culture and values.

And rooted in our Swedish culture.

In 2018, we grew to 6,500 co-workers.

We believe gender equality is better for humanity and better for business. And we’re not just saying that…

52% of our co-workers are women

51% of our managers are women

And in 2018, IKEA became an even better place to work.

We listened to our co-workers…

And now provide every co-worker with minimum guaranteed hours and work schedules four weeks in advance

So they can enjoy a better everyday life at home and at work.

Our Talent Week showed co-workers how to grow their careers with us.

IKEA contributed an additional $1,453.60 to every full-time co-worker’s retirement program and a proportional amount for part-timers, regardless of position or salary level.

Just our way of saying TACK!

(It means “thank you” in Swedish. )

We want to be one of Canada’s top employers. We continue to contribute to our Total Rewards offering, including an enhanced benefits program for co-workers in 2019.

Spotlight on Steve Foster

Store Manager, Coquitlam

"My journey with IKEA began more than 27 years ago, collecting carts in the parking lot as a seasonal co-worker.

Today, I’m the Store Manager in Coquitlam. It’s been great to be in this store with amazing co-workers who want to make our location the best in Canada.

My favorite IKEA memory is the first time I met Ingvar Kamprad. When I went to introduce myself, he reached over and gave me a big hug! After 20 years, it was a pleasure to meet the man who created such a fantastic company. Many companies have great vision statements, but IKEA delivers on what they believe".

5

Beautiful Possibilities

for the many people.

Everyday life should be better for everyone, so we’re putting people and communities first.

All children have the right to a healthy start, so we partnered with Breakfast Club of Canada to ensure children started the school day with a healthy meal. Since the partnership was formed in 2016, IKEA has helped to feed over 40,000 children across the country.

Our annual IWitness Global Citizens Program offered a life changing opportunity for 5 Canadian co-workers.

Last April, they travelled to Indonesia to see a Save the Children program funded by the IKEA Foundation focused on inclusive education. Ambassadors visited with officials, teachers, families and children with disabilities who were working together to ensure all children have the opportunity to go to school and get the education they deserve.

We also want to be active partners in our local communities.

Our stores helped support Habitat for Humanity by donating products and volunteering on build sites.

IKEA wants to create a diverse, equal and inclusive work environment where individual differences are celebrated.

“No matter where you come from, values are the most important thing. And that’s why it’s inspiring to work at a company like IKEA, based on great values.” - Sandra Bakajlic, IKEA Quebec co-worker

We’re also working towards a more gender-equal world.

We partnered with the Canadian Women’s Foundation to provide needed home furnishings to 13 women’s organizations, including self-employment initiatives, organizations that provide shelter and support to women who have experienced abuse, and violence prevention programs.

Four female leaders from IKEA Canada

We also announced plans to join a private-sector gender equality leadership coalition in partnership with UN Global Compact and supported by the Canadian federal government.

We are proud to stand up for equality.

We raised the Pride Flag at stores across Canada in honour of International Day Against Homophobia, Transphobia and Biphobia.

We also supported Pride celebrations across the country.

“I was extremely proud of the group of co-workers who volunteered as parade marshals and subsequently walked in the parade. To have my fellow co-workers support not only me, but the entire 2SLGBTQ+ community here in Halifax, was without a doubt, the highlight of the parade for me.”David Duplisea, IKEA Halifax Co-worker

And we didn’t just march with Pride…

Beautiful Possibilities

for the future

These are exciting times for IKEA in Canada.

Urbanization. New technology. Digitalization.

The world is changing. Life is changing. Home is changing.

And we are changing too.

We are transforming our business model to ensure we’re accessible, convenient and sustainable today and in the future.

All with the goal to become the leading multi-channel home furnishings retailer.

As we look forward to 2019, we’re excited about the beautiful possibilities that lie ahead.

“Happiness is not reaching your goal. Happiness is being on the way...

We are just at the beginning.A glorious future!”

Ingvar Kamprad(1926-2018)

About IKEA Canada

IKEA Group is a leading home furnishing retailer with 357 stores in more than 29 countries worldwide, which are visited by 817 million people every year. IKEA Canada has 14 stores, an eCommerce virtual store, five Pick-up and order points and 17 Collection Points. Last year, IKEA Canada welcomed 30 million visitors to its stores and 104 million visitors to the IKEA.ca website. Founded in 1943, IKEA's business philosophy is to offer a wide range of products of good design and function at prices so low, that as many people as possible will be able to afford them.